Invesco Asia-Pacific global markets strategist Zhao Yaoting said Asian tech
stocks move closely with the US semiconductor cycle due to shared supply chains
and similar investor positioning, increasing regional sensitivity to shocks. He
warned a highly concentrated AI investment narrative magnifies volatility, so
company-specific misses or demand/supply disruptions produce outsized market
moves. Zhao said Korea’s market is not excessively stretched: the MSCI Korea
five‑year average P/E is about 10.5x and has fallen to below 7x, while Korean
tech firms are reporting record profits. He added that near‑limitless demand
from hyperscale cloud providers underpins a constructive outlook for tech
hardware; global deployment of scalable cloud and AI compute data centers
remains early and is accelerating, leaving room for further AI-driven growth.
Zhao described the recent pullback as a healthy, cyclical rebalancing after some
expectations may have been priced in.
